Why is Gore's petrol cheaper than everywhere else?

Saturday, 16 July 2022

Motorists in Gore are filling their vehicles with some of the cheapest fuel in the country.

We’re all feeling the pain at the pump – but for some reason in Gore, it’s not quite as bad.

The average price of a litre of 91 petrol hovers at over $3, and in some places it has reached as high as $3.19 for a litre of 91 octane.

But at Gore’s seven petrol stations on Saturday, prices range from $2.84 to $2.96 a litre.

Sarah Wilson was filling up at the town’s Gull service station on Friday.

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Energy Minister Megan Woods explains how the price of crude oil is driving up the cost of petrol at the pump. (Video from May 6.)

“I don’t know why it's cheaper here than everywhere else, but I’m not complaining,’’ she said.

“Petrol is a big part of our budget so any saving you can make is worth it.’’

Gore is a long way from a port where fuel is delivered – it’s nearly 90km to Bluff and more than 150km to Dunedin, so fuel trucks have a bit of travel to get to the eastern Southland town.

Yet it is cheaper to buy it in Gore than 40 minutes south in Invercargill, where the price ranges from $2.91 to $3.04, according to the Gaspy website.

It hasn't always been that way. In 2018 Gore motorists were paying 20c more a litre than their southern neighbours, but since then, new stations have opened in the town.

BP, NPD, Z, Gull, McKeown, Caltex and Allied Petroleum all have service stations in Gore, and all were approached for comment about why the price of fuel is cheaper in the town than elsewhere.

But those that replied did not say specifically why fuel in Gore was cheaper.

A Z Energy (Z) spokesperson said the cost of fuel at the pump is made up of a number of factors, including global market fluctuations, shipping and freight costs, the price of carbon and local competitive pressures.

“Z does not disclose the specific factors that determine the price of fuel at each individual service station,’’ the spokesperson said.

The company reviews its pricing daily and makes up to 50 price changes a day outside any nationwide move.

“Z’s fuel pricing is localised. What this means in practice is that prices can be different at service stations within regions or even the same towns based on a range of factors such as varying property overhead costs or local competition. At Z, the prices are set by head office not by the individual service stations,’’ the spokesperson said.

“Headline price rises have occurred around the country as our key input cost – the price of refined fuel – has gone up.’’

A BP spokesperson said there were a number of factors that influence prices.

“We continue to review BP Connect prices every day to ensure competitiveness in the market.’’

* This story was amended at 10.53am on July 18, 2022, to reflect the correct spelling of McKeown.